"The low down payment made the deal work," says Jeff Dowdle with Marcus & Millichap Real Estate Investment Brokerage Co. in Dallas. He tells GlobeSt.com that Addis Properties assumed Fannie Mae debt, serviced by American Property Finance of New York City, getting a 10-year balance on a fixed-rate loan with a 7.78% interest and 30-year amortization for Springcrest Apartments at 2007 Springcrest Dr. He adds that the assumption cleared with a $1-million mortgage reserve that rolls back to the borrower after a certain debt coverage ratio is met.

Addis Properties was turning around gain from an end-of-the-year sale of the 170-unit Coronado Apartments along Center Street in Arlington, according to Dowdle. The broker says the pre-emptive move came about as he was preparing a marketing brochure to pitch for the listing of Feiga/Springcrest LP of Great Neck, NY, which wanted to hawk its last asset in Dallas/Fort Worth. The seller acquired the property in June 1997. "They really just wanted to get out of Dallas," he says about the pool of wealthy investors from the Midwest and Northeast.

The new owner is working to get several down units back on line. The immediate result has been an uptick from 77% occupancy at closing to 85% at press time. Dowdle says Addis Properties, which runs a local management company, also is working through a concessions' burn-off to build in additional immediate upside.

Springcrest Apartments was built in 1985 on 16.6 acres near the intersection of Pioneer Parkway and US Highway 360. There are 40 two-bedroom apartments and the balance are one-bedroom units. The apartments, ranging from 418 sf to 759 sf, rent for $425 to $675 per month.

The Springcrest is Addis Properties' largest asset in Texas. The firm owns two more multifamily properties in Dallas and one in Corpus Christi. "He's done for awhile until he gets his hands around this one," Dowdle says.